HSBC Bank
The story
After moving from an area I began to use my HSBC checking and savings accounts less and less and finally called them and asked them to close the account when it was down to something like ten dollars.
I then started getting overdraft notices. I called several times asking them to close the account. They said they could not dure to the overdrafts. I asked them to at least stop any electronic activity on the account because there had just been a major flood and then mold remediation crisis in my rental apartment and I had to move because of it and didn't have any money to pay the overdrafts. I called more than once they insisted they could not block electronic purchases or automatic withdrawls and would not close the account
So now there is a 900 almost entirely overdraft charge in collection and it is listed on CheX systems report (though it has had no effect on my B of A account)
The questions
I considered writing them to dispute the bill but from all my reading they have the legal right to charge these outrageous fees and not to close an account or block anything
I have also read they are not the best at making deals --like accepting $250 as payment in full or even $500 or anything.
Question 1" Is my perception that legally (although not morally) they are in the right correct?
Question 2: What is my best path for addressing this and is it something I can do myself or does this seem like lawyer material
thanks
Forsety
Quote:After moving from an area I began to use my HSBC checking
Quote:
After moving from an area I began to use my HSBC checking and savings accounts less and less and finally called them and asked them to close the account when it was down to something like ten dollars. |
Why couldn't they close the account when it was in a positive state? A little confused.
Quote:
I then started getting overdraft notices. I called several times asking them to close the account. They said they could not dure to the overdrafts. I asked them to at least stop any electronic activity on the account because there had just been a major flood and then mold remediation crisis in my rental apartment and I had to move because of it and didn't have any money to pay the overdrafts. |
You stated you started getting overdraft notices. Were these from returned transactions due to Insufficient funds? Also how long has the account been overdrawn? $900.00 indicates a major flow of overdraft fees. Where these "electronic activities" as you state authorized by yourself eg. bills, etc..?
On the first question-- I am not sure. My guess would be that wh
On the first question-- I am not sure. My guess would be that when I called there was a small positive and that after we got off the phone maybe some paypal subscription type thing went through
On the second question:
The overdrafts began the very end of August 2007
The crisis with mold and flood to moving began at that very time and we moved in mid October.
Stupidly in the crisis we opened no mail since we could not afford anything and where really in a basic survival struggle
I have found some slips and they do say insufficient funds
And I did see that the initial overdraft was recorded right (like a day or so) after our request to close the account and was one where there were 4 charges from I believe paypal ....one for $3.60 one for 1.25 and one for $25 and they of course charged all three as overdrafts
What I am not clear on because we were such a mess is whether they PAID they paypal or whatever we purchased electronically OR if all the amount is is overdraft charges.
Each overdraft was $35 plus there seems to be other penalties added on to that of some sort.
Is that enough information to be helpful here?
Ok, so basically your bank account was hit with $900 worth of NS
Ok, so basically your bank account was hit with $900 worth of NSF fees which caused HSBC to finally close your account?
Once they closed it they reported it to Chexsystems which is typical for banks.
If the bank have reported the $900 to a collection agency then I suggest you work out a payment arrangement with them. You are correct the NSF fees are fully Legal unfortunately, if your account was overdrawn due to preauthorized ACH transactions.
If the bank still holds your account open with a -$900 balance I suggest trying to negotiate with them to reduce some of the NSF fees and a repayment plan.
:D Thanks Aristotle (I say that often actually-- in reference t
:D Thanks Aristotle (I say that often actually-- in reference to that greek guy:)
It has not appeared on my credit report. And I am secondary on the joint account. Does it make sense for me to ignore this unless or until it appears on a credit report or they make any contact with me?
Do banks sometimes only report to cheX?
And actually I just prdered my cheX report after ordering the main account holders report (which is where it was reported)
However I do not think it appeared on the main holders credit report either
I am just making a normal salary...*from 13,000 normal - $42 plus in one year) so I am trying to get my ducks in a row and I have 2 collection accounts I need to get cleaned up on my credit report...so unless I need to act on this or risk something by waiting...I wonder if on this one the temporary Ostrich strategy might actually be sensible
Well I understand your situation and I will try to give you my
Well I understand your situation and I will try to give you my opinion on the matter. Others will be along to offer more help.
The reason it has not appeared on your Credit Bureau report or your Chexsystems report is because you are not the primary account holder.
This debt can be reported to the Credit Bureau at some point if no payment is received either to the bank or collection agency. I have seen it happen in the past. I am sure it will only be reported under the primary account holder's name, but stranger things have happened.
My morale opinion is contact the collection agency you received notice from and let them know your financial situation. Maybe they will be willing to accept small payments untill the total balance can be satisfied. It doesnt hurt to try. Ignoring a debt may only make things worse at some point :?
I understand the reality of your situation so do what you think is best for you. :wink: